Why You Never Get IPOs (And How to Change Your Luck)
If you keep applying for IPOs and getting zero shares, you are not alone. When a good IPO comes out, millions of people apply. Because there are not enough shares for everyone, the stock market uses a computer lottery system to decide who gets them.
Many people think that if they apply with a huge amount of money, they are guaranteed to get shares. This is a myth. Today, if you apply for ₹9 Lakhs, you have the exact same chance of winning the lottery as someone who applied for just ₹2 Lakhs. Your extra money is just stuck in your bank account for days doing nothing.
"The only time you truly fail is when you stop trying. Every rejected application is just one step closer to the one that finally gets accepted."
Here are four simple rules to actually increase your chances of winning the IPO lottery:
1. Buy More "Tickets" Using Family Accounts
Think of an IPO like a lucky draw. If you apply for ₹10 Lakhs from your own account, you only get one ticket in the draw.
The trick: Ask your family members (like your spouse, parents, or adult children) to open Demat accounts, since they all have different PAN cards. Split your ₹10 Lakhs and apply for ₹2 Lakhs from five different accounts. Now, you have five lottery tickets instead of one.
2. Don't Freeze Extra Money
In the small HNI (wealthy investor) category, the minimum application is usually around ₹2 Lakhs. If an IPO is very popular, the computer will only give out the minimum lot to the winners, no matter how much they applied for.
The trick: Just apply for a little over the minimum (like ₹2.1 Lakhs). Don't apply for ₹5 Lakhs or ₹8 Lakhs. It does not increase your chances of winning, and it just blocks your extra money from being used elsewhere.
3. Cross the ₹10 Lakh Mark If You Have Big Money
The stock market splits wealthy investors into two groups:
Small group: ₹2 Lakhs to ₹10 Lakhs
Big group: Above ₹10 Lakhs
There are twice as many shares reserved for the "Big" group.
The trick: If you have around ₹9 Lakhs to invest, try to add a little more and apply for ₹10.5 Lakhs. Moving into the "Big" group can sometimes give you a slightly better chance of winning because there is a bigger pool of shares available.
4. Always Choose the Highest Price
When an IPO opens, the company gives a price range (for example, ₹100 to ₹105 per share).
The trick: Always type in the absolute highest number (₹105). If you bid ₹104 and the final price is decided at ₹105, your application will be thrown in the trash instantly. Always bid the top price so your application is accepted.
"You miss 100% of the shots you don't take. If you walk away out of frustration, your chances of getting an allotment drop to absolute zero."
While getting an IPO will always involve some luck, spreading your money across different family accounts and applying smartly ensures you are playing the game with the best possible odds.
